Renewed IT focus rewards Newcall

By PETER GRIFFIN

Newcall Group's renewed focus on the IT market has been accompanied by a move to profitability.

The company reported a maiden profit of $1.9 million for the 2002 full year, an improvement from a loss of $3.3 million in 2001.

Revenue of $22.6 million for the year came mainly from internet provider Iprolink and electricity reseller Energy Online, which Newcall has since sold to Genesis Power.

Sale of its customer base contributed $3.4 million to Newcall's result.

A $527,000 foreign exchange gain was made through the conversion of all foreign debt from US to New Zealand dollars.

Newcall had net operating cashflow of minus $1 million.

No dividend will be paid to shareholders.

Chairman Jim Bracknell said the profit would instead be used to reduce debt.

He expected Newcall to be debt-free by the end of June.

With a stronger focus on the IT market, Iprolink would remain Newcall's central interest with a subsidiary, Newcall International, providing utility billing and customer management software.

Newcall aims to become a provider of wireless broadband services on a large scale.